Millions of dollars in state aid for the Mayo Clinic’s expansion is expected to begin arriving in Rochester, Minnesota, this fall.
The Legislature pledged about $585 million in tax money for the Destination Medical Center project in 2013, but the funds were on hold until enough private investment was made, The Star Tribune reported. Nearly $300 million in private investment has now been raised.
“The momentum we’re building, based on this business model, has never been stronger,” the center’s Economic Development Authority Executive Director Lisa Clarke said in a statement. “We currently have 14 projects with a total value of more than $700 million under development or in the planning phases, and we’re receiving strong interest from real estate investors and developers from around the globe.”
The figures released by the center’s board Thursday put private investment totals at $297.7 million so far. The figure covers everything from a new sign at a private business to a $68 million Mayo project at its St. Marys Campus.
Of that amount, about $145.3 million in investments were made last year alone. Most of it was from the Mayo Clinic.
Less than two years ago, city officials expressed anxiety over the slow pace of development and weariness about the project’s long-winded meetings and aspirational reports.
Investment totals should increase more next year, due to major projects such as a $100 million Hilton Hotel and residential tower in downtown Rochester; a $115 million apartment complex from Minneapolis developer Alatus, and another $38 million apartment complex from the Opus Group and Rochester-based Titan Development.
The Mayo Clinic expansion was originally was pitched as a needed step to keep the clinic competitive with other world-class medical centers. The plan calls for adding up to 45,000 jobs in Rochester, adding billions in tax revenue and nearly doubling the city’s population.